Markk wrote:... when a goverment grows to the point that it spends more than it receives, then it creates a problem of simple math ...
I have to say it. LOL.
The fact that you think that government finance works the same way as those of an ordinary person living from pay check to pay check shows you don't know what you are talking about. Let's give you a simple example:
1. Countries A and B both start without any roads suitable for wheeled vehicles, so goods have to move about on the backs of people or mules. They are both pretty damn dirt poor.
2. Country A decides that the government will go into debt by spending more than it receives from tax, and borrows abasing future tax receipts in order to build a basic road network. Country B goes with the 'simple math', and does not.
3. Result: commerce in Country A becomes much more profitable because of the more rapid and cheaper transport network, and the government eventually raises more money from taxes on commerce to repay its loans. Country B stays as poor as it was at the beginning.
You'd rather live in Country B, where they live by the 'simple math', I suppose?